Thank you, Madam Chair and members of the committee.
I'm Jay Thomson, CEO of the Canadian Communication Systems Alliance, CCSA.
CCSA represents independent communication companies that provide bundled TV, Internet and telephone services to Canadians mostly living in smaller communities and rural areas.
The Rogers and Shaw families are long-standing industry colleagues, and we regard the companies they have built with the greatest respect. Nevertheless, we fear that the Rogers-Shaw deal has the real potential to make some already bad things worse, both in broadcasting and in telecom.
Last week, we appeared before the heritage committee for its study of Bill C-10, which would amend the Broadcasting Act. We highlighted that Rogers, as well as Bell and Quebecor, have already become so big and powerful that the CRTC has had to implement regulatory safeguards to preclude them from using their size to increase consumer costs and reduce choice. We advised the committee that those domestic communications giants have been using their size and influence to undermine the CRTC's consumer safeguards, and we warned that they will only increase those efforts if left unchecked. Regardless of this Rogers-Shaw deal, the CRTC's authority to establish and enforce its consumer safeguards must be confirmed and strengthened. With this deal, a giant will get bigger.
Rogers' cable and Internet subscribers will roughly double in size. That will double the guaranteed cable subscribers to Rogers' TV services, like Sportsnet, at its own preferred rates. Absent the CRTC's safeguards, Rogers could then use its expanded cable size to squeeze smaller cable companies for higher carriage rates for its services, as well as for other concessions, resulting in higher prices and less choice for rural Canadians.
Further, absent the CRTC's safeguards, Rogers could use its expanded Internet size to favour itself with exclusive access arrangements for its online sports service, Sportsnet Now. What will ultimately happen with the numerous Corus TV services now owned by the Shaw family? No one knows.
Should the big get bigger, it will only increase the need to ensure that the CRTC has the authority to implement regulatory safeguards to protect consumers against the domestic giant. Safeguarding consumers where an industry is dominated by a few large players also comes through regulatory decisions that promote competition from other players. The most important of such decisions in these circumstances now becomes the CRTC's pending ruling on providing mobile competition to all of the dominant wireless providers through mobile virtual network operators, MVNOs. As with the other consumer safeguards, MVNO competition is needed regardless of this Rogers-Shaw deal, but even more so if the deal goes through.
I'll end on a positive note. As an industry committed to extending broadband to all Canadians wherever they live, we appreciate Rogers' commitment to a $1-billion broadband fund. However, the devil will be in the details as to whether it will actually accomplish its welcome goals, so more scrutiny is warranted.
Thank you again for this opportunity, and I look forward to responding to your questions.